The Franchise Advantage: How Business Support Can Make or Break Your Success

When people ask me why we chose franchising over traditional entrepreneurship, our top reason is always the same: business support.?

While traditional entrepreneurs start out on their own, often spending years burning through savings as they figure out the ins and outs of their business, franchisees benefit from a complete, tested, and optimized business system provided by the franchisor.?

But that's just the beginning of the support a good franchisor can offer.

The level of business support varies by franchisor, and it's crucial to consider how well a franchise's offerings align with your own expertise and needs. If you have extensive operational leadership experience in business, nonprofits, or the military, a franchisor with basic support may suffice.?

But if you're new to business ownership or leadership, you may benefit from a more comprehensive support system.

Basic Business Support: The Non-Negotiables

Every franchisor should provide a foundational level of business support. If a franchisor you're considering doesn't offer the following, consider it a red flag. It could indicate an underdeveloped business system or insufficient resources to support franchisees.

Operational Manual: This is your franchising bible. It should include network-wide policies, requirements, and recommendations for implementing the franchisor's business system. Having this in writing protects both parties by making obligations clear and enforceable.

Training: Franchisors typically require training to familiarize you with their business model, key policies, and culture. This may be in-person or online, and the best franchisors offer ongoing training opportunities to help you develop and succeed.

Marketing: Marketing assistance is essential, but the level of support varies. National brands often run national ad campaigns and provide opt-in local promotions, while smaller regional brands may focus on billboards, targeted digital ads, or mailers. Your franchisor should also maintain a website and possibly social media to advance the overall brand and help customers find your business.

Networking: The franchise owner network is a key part of your business support. Fellow owners can serve as mentors, troubleshooters, and cheerleaders. Avoid franchisors who discourage owner contact (a potential sign of franchisee dissatisfaction) or have isolating or cutthroat cultures.

A good franchisor will also connect you with a network of quality, possibly discounted vendors. Some franchisors require the use of certain vendors, which isn't necessarily a bad sign. Just watch out for required vendors who take advantage by providing poor service or charging exorbitant prices.

Comprehensive Business Support: Going Above and Beyond

Some franchisors go the extra mile to provide truly comprehensive business support. This often involves one or more of the following:

Financing: Some franchisors offer direct financing to qualified franchisees or have a network of financial partners for quick startup loan approval. While convenient, these options may carry higher interest rates or shorter payback periods, so read the fine print.

Software: In today's digital world, software is often essential. Many franchisors have proprietary software for point-of-sale, customer appointments, employee scheduling, procurement, marketing, or CRM. If your franchisor provides software, they should also provide technical support.

Onsite Support: For brick-and-mortar franchises, some franchisors offer onsite support, especially during launch. This may include site visits from a corporate representative to help optimize your space setup, train employees, learn proprietary software and equipment, and more.

Inside Sales/Customer Service: Some franchisors provide centralized inside sales and/or customer service teams. These teams can make sales calls, send out materials, field customer inquiries or complaints, and book appointments. This support can be invaluable if you're new to business, lack sales expertise, or have a small team.

Franchise Fees and Business Support: Understanding the Relationship

There's typically a direct relationship between a franchisor's fees and the level of business support they provide. More support means higher fees, while less support means lower fees - or at least, that's how it should work.?

When evaluating franchisors, compare apples to apples, considering both upfront and ongoing fees. Franchisors with similar fees should offer similar support levels, and those with higher fees should provide more comprehensive assistance.

If you notice any deviation from this pattern, take a closer look. A franchisor with low fees but comprehensive support could be a newer brand trying to attract owners, or they may have an unsustainable business model.?

On the flip side, a franchisor with high fees but minimal support may be in financial trouble and trying to make up the difference through franchise fees. Don't hesitate to ask questions, and walk away if you don't get satisfactory answers or sense the business is on shaky ground.

Choosing the Right Level of Support for Your Needs

When it comes to franchisor business support, there's no one-size-fits-all solution. The key is to find a franchise that offers the right level of assistance for your background, skills, and comfort level.?

By understanding the range of support available and how it aligns with your needs, you can make an informed decision and set yourself up for franchise success.

Ready To Explore Franchising? Let’s Talk!

Mack and Sharon Strange are on a mission as Franchise Consultants to help others go from “Start” to “Success” when it comes to franchise ownership.

If you’re curious about exploring franchising as a career pivot, investment vehicle or lucrative side hustle, let’s talk!

Frequently asked questions (FAQs)

Q: How do I book a call?

A: You can book a free, no obligation call with Mack here and/or a free call with Sharon here.

Q: How much do your services cost??

A: As Franchise Consultants, there’s no fee for our services. We’re compensated by franchisors only if and when you decide to move forward with (and are approved for) franchise ownership.

Q: What do you do??

A: ?Our role is to serve as a trusted guide and educational resource.

Q: Where can I learn more??

A: You can learn more about our story and how YOU can follow in our footsteps via the Franchise Together Podcast.

We look forward to connecting with you soon!